The Fund seeks to provide significant environmental and social benefits for the rural and urban population of SSA by investing in decentralized renewable energy projects thereby providing compelling risk-adjusted returns to its investors and contributing to climate change mitigation and creating socio-economic benefits to local populations, by allowing them to replace dirty and inefficient fuel sources. One of the first public-private investment proposals with the GCF.

The Fund can offer a wide scope of financing instruments including senior debt, mezzanine, guarantees and risk sharing instruments. The fund does not make equity investments. Investments can be direct investments in companies or projects, or indirect investments through local financial institutions.

The Fund is anchored by the UN’s Green Climate Fund (GCF) which has committed an initial USD 80 million in first loss capital (junior capital). Senior capital is protected by subordination of junior capital (50% at first closing, reducing to 1/3 as the Fund grows and granularity increases); UGEAP is managed by DWS’s Sustainable Investment team, which has a long track record in structuring and managing public-private partnership funds, leveraging the team’s 20 year history of lending into frontier markets.

DWS International GmbH, Green Climate Fund